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tv   [untitled]    April 30, 2015 3:00am-3:31am PDT

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is a redaction of numbers of folks in the registry i'm a happy to have a implication with airbnb about must not to protect this information the eight is the criminal penalties against hosting platforms under the curiosity allow and we're amending this to allow for the penalty to be against platforms as well and let me close by saying i'm greatly disappointed by some of the recommendations of your staff which again recommendations that essentially led to a different position the staff is recommending against hosting platforms of data i don't know how you can talk to that and change our tune they've
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asked for the removal of the abdomen at the landlord this is a mistake they have interests and the staff is recommending a expedited right of action for interested parties again, that is a mistake enforcement requires the individual have the right to pursue the right of action and staff extorts a hundred 20 day cap that goes too far but i'll close with that what happens or doesn't happen it send a clear message how we do business in city and county of san francisco i believe that home sharers have a place in san francisco but didn't have a place in san francisco is the idea that a corporation can write a law then ignore the very law it wrote and then refuse to
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provide the basic information that is needed to enforce that law mr. conway and others who have invested heavy in airbnb may think they can dictate what happens ♪ building i hope that through our action this commission the board of supervisors will keep in mind that that is not corp is run san francisco that run the planning department but this department and the policy of this city is ultimately driven by what is right for san francisco and not by what is right for the bottom line of a major political contributor (clapping) thank you >> i'd like to invite supervisor farrell up.
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>> good afternoon, commissioners commissioner president fong thank you for having me here today for a second i thought that supervisor campos was looking for airbnb employees i thought he was looking me proud to be representing folks in the second district and talking about the amendments last year our board of supervisors came together with input from the planning commission thank you to planning staff and everyone involved last year and this year at looking at the issues to pass a recommendation 40 for airbnb it is extremely complicated but ultimately we derived a fraction for a start since that time many of those interested on those topics and many outside of city hall have continued to look at
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the issue in terms of it's legislation and logistics from when i prospective i believe we should fully support home sharers in san francisco number one to create a law that is without a doubt improbable number two to create a law that protects affordable housing and 3 to create a law it streamlines the process and didn't create bureaucratic red tape for those who want ta to their their homes given the crisis of housing we must protect our city from short-term rentals and strike the balance nell necessary to the residents can delivery in the city and make end meet with all eyes on san francisco how we approach
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short-term rentals it is extremely important in their opinion to streamline our current framework and processes i believe that that mayor ed lee and is proposal does exactly that i'm going to be brief in my comments about exactly what those proposals are and the details they contain 3 component first of all, a hundred and 20 day hard cap on the unable number of days for short-term rentals by treating outline short-term rentals hosts by host and non-hosted days i know that supervisor campos a friend happened to disagree we both have listened to the planning department and that was the number one thing we heard if we're going to create an enforceable law the distinctions within hosted and non-hosted days is not enforceable we've
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corrected that and even if companies proposed a harding cap it is reasonable and second of all we've created american people enforcement that is staffed by our deniable and our treasurer and tax clerk's office and in speaking with mayor ed lee enforceability continues to be a major priority and by creating a separate office demonstrates the departments to making sure that this law is passed and impersonable enforceable and we're adequately staffed to make sure that our departments are enforcing the law i'll say i have great discussions over the last few weeks that the planning department together where the department of building inspection together with the
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treasurers and tax collectors office to set up the law and streamline the process for home sharers by create a enforceable department thank you to all the department in dealing with that issue and thirdly with the right of action that will allow property owners and others within one hundred feet to be able to use the private right of action prior to the protection again, our goal i'll say is again and again to protect our housing stock to streamline the short-term rentals host process and clarify elements of the law to make sure it is enforceable. >> i do want to thank the planning staff for recommending those 3 proposals and that mayor ed lee and i have come down with as well as recommendations i want to take a moment to focus
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on one recommendation on its face i feel will have unintended consequences and recommendations that prohibit hosting platforms for listing a unit without a registration number i feel serious about the entire issues that this recommendation should not staples to be clear this recommendation only target one company airbnb and i understand in the past and even today, there are an easy target in you look at the number of listings has gone down you awhile all the others home sharing platforms have gone up and from my prospective we want to address the entire issue not only one company i think there are serious questions whether those other platforms or individuals that
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run their own sites would be able to apply with the siberia requirement i have questions of the invocations whether the city made a mistake and building that the unintended consequences quite frankly we've seen of pushing people that are doing home sharers in san francisco off at&t park and on the 09 platforms we're not irregularity one of the goals as a city to incentivize people to track and able to endorse the law bad acres making this more difficult for this specific represents if it's approved commissioners thank you for your time and i do
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want to thank the staff and all the departments dbi and a our tax collectors to talk about the prelims of that so we can start endorsing and thank you to the mayor for dealing with that issue. >> thank you very much. >> thank you. >> it's me again so thank you supervisor farrell supervisor campos and supervisor kim for your introduction i'll be giving you a brief overview of the summary of staff's recommendation and ems to alex who will speak about the research he's done on short-term rentals and memo he drafted included in your case report before your ordinances sponsored empty supervisor kim i'll be referring to as the kim orntdz
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or ordinances i'll be referring to another supervisor campos ordinance and one i'll speak about all 3 ordinance all the time the charter code important the short-term rental program together these will do the following they go from 90 to 60 or h and 20 days remove the definition of hosted and non-hosted and unit as short-term rental for 5 years and amended the interested party and prohibited hosted with not registry number and report quarterly to the city with the number of nights and creating a separate agency by the zoning administrator, what say you?
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office and dbi to administrator the short-term rental program generally, the department supports the law of short-term rentals and now the elimination implementation short-term rental program has begun we believe that sheriff's should have a structure and many of the proposed all the times add - while seek to protect the public on neighborhoods and the housing stock a proposed amendments increase the city capacity to enforce it by adding resources and data for checks and balances more easily verified, however the department buildings this undermines the rights the following recommendations for the major items in each ordinances individually open those to be voted on and any other amendments 3 you'd like
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lee to make the first thing remove the distinction between hosted and unhosted the supervisor campos and other and prohibit the units subject to the ellis act from registering in the short-term rental respiratory and allow the city to institute the hosting platform owner for all 3 ordinances allow the private action for nonprofits in the kim action and within one hundred hundred feet for the supervisor campos ordinance and mayor ordinance and prohibit the performance from listing you units not having a good business and adding the short-term rental to have the mayor to have a department staffed by the tax collectors office and make
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maximum number of nights it can be used a ass a hosted or inhosted one hundred and 20 days and if should use sensitized the illegal conversion to tourist and remove the provision in the administrative code for the hearing of violation of sound this is a department sponsored amendment and remove the cross-examination of witnesses and don't require the hosting platforms to report the number of itself it was occupied do not remove the owner of the resident or residential unit of a definition of a interested party for the supervisor campos and does not allow private rights of action after 90 days without the
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department issuing civil action and finally all units as long as as adu's from being used as short-term rentals and on the last point i believe that supervisor campos wanted to remove that from his ordinance you can still vote on it. >> several other agencies are available for questions including u including from the controller's office that concludes my remarks. >> commission this is a second year college student for economic policies and housing affordability and real estate development he's been with us for several months before arriving in the bay area he worked in new york city for a
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nonprofit and in operation community to schools and high poverty he's a graduate with a bachelors welcome. >> good afternoon as john mentioned i've had the pleasure of working with ann mare competing research i've been trying to uncover about two central questions first what is going on in the short-term rental market in san francisco and second what are the potential threats from short-term rentals to the housing supply 2, 3, 4 san francisco my work uses all the pub available data from the large short term platform and large sample of listing from grazing list i think this allows us to
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look at the evaluation and all to calling your attention from two conclusion first, the conversion of parliament from hotels motivators there are 3 airbnb unlist in the city and many analysts classroom in the two small is a number for housing crisis i have 3 reasons i disagree first 3 to five hundred thousand unit is actually a lot of when you compare those to unite to rent the rental market imentsz is extremely hot in san francisco and so 3 to 4 thousand unit are a lot impaired to the thesis unit available for rent at any valuable time and important
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importantly the the majority of unit and unit we believe are commercial and high invent unit are located from the central and downtown area the mission and hate and castro and hundreds of unit being taken off the market could add to the shortage we're experiencing finally the market a evolving we expect that more and more people want to use short-term rentals in san francisco traditional hotels are reporting their full at the moment and no new hotel units coming online there are reportedly one hundred and thirty thousand visitors that stayed in short-term rentals i expect that number to roadways i second conclusion that maybe possible to set the cap higher
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than the 90 day limit before we see the conversion from short-term rentals to hotels my analysis as i mentioned we looked at 3 thousand unhosted around unit of 9 thousand grazing list found based on this estimate a cap of about one hundred and 20 to days incentive vision zero almost no conversions i'd like to through a few caveats the statistic i mentioned only talks about the profitable amount of work people are doing whai'm saying we're incentive vision zero landlord when the cap is much higher than indeed and 20 days this is not all the impacts and the rental
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bedrooms are taken off the market or roommate situations removed and third this data is reliable but acknowledge not perfect accurate i ask you to view this as an economic guidelines and not a scientific estimates so i'm still work on a report a full version complete in mid-may hosted on the planning department website i'm available to answer any questions to sum up the two conclusions one the loss of unit from the long-term to short-term rentals conversion matters and the 90 day cap revised for the long term rentals thank you. >> thank you. >> shall we open up for public
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comment. >> yeah. >> and just for the benefit of the public we will be taking those disabled persons first and everyone's comments is limited to minutes. >> okay could we ask a question to mr. march right now. >> i forgot to mention alex has to loaf at 5. >> just a short question may i ask why you're only using two sources airbnb and embracing list rather than looking at broader there is different patterns of other platforms so awhile i'll accept your economic analysis the impact is slightly nor varied and intense look at
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the broader data. >> this is insightful data for the kraigdz list this was the only data i accounted get rather than using the board summary statistics for airbnb i was hoping to look at data i could classify that right the only rental approach i had data available from 5 different points of the time and commissioner antonini. >> yes. thank you for your report i have a couple of points i think you said something like the average week r was 43 days a week and average income $950 per month obviously some represents are making a lot more is that
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accurate to our report. >> as and mentioned at the end of my comments i really hope you take those numbers as guidelines i was trying to estimate revenue i don't have booking data from airbnb so it is not possible for the exact number of revenue but you're able to get a general sense so the assumptions i made is that each liz was rented for the average days that's been 5 days per booking then we do know that reviews are under recorded by some instances and reviews for the way i tried to proxy to estimate houchltd their rent and inflated the number i ended up with a range of a minimum to guesses as what is happening in
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reality without true numbers from airbnb. >> even with our high-end estimate it must be low enough you can make the conclusion that you can allow one hundred and 20 to one hundred 80 days if the money that is gapped from the short-term rental is not accurate certainly the landlord makes more by renting it to a permanent resident for an entire year that is an important point you made in our report i would think this is how you came up with that. >> absolutely the breaking analysis what was more possible not necessarily whether airbnb is profitable at all that's the only distinction. >> it's break even not other than. >> not for at&t park. >> whoever has to make money. >> absolutely.
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>> that maybe the defining factor someone is distancing having to put up different people that in their render unit there are inconveniences for that unless substantially a better situation they're more inclined to have permanent respecter. >> that's a good point. >> commissioner richards. >> one question our basis for the recommendations were economic did you consider any other economic reasons and how you capped those.
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>> is your question why did i not include the i'm working on a new model for rent control and other reasons for holding unit off the market leonardo da vinci hold unit off the market for many reasons how much they make over a 10 year period. >> if i'm a landlord i'm averse to rent control okay activity you're afraid to get them out this helps me to keep the unit off the marketed it provides some level of income rather than vacancy. >> commissioner johnson. >> thank you very much i have a quick question in your report you say that the vast majority of unit that are rented out full-time is a small number and tend to be concentrated with commercial i guess you can't call them yourselves there's the owners the property and you arrived at the number of 3
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average unit for commercial did i read that correctly or. >> there's a few different numbers you may be referring to you tried to estimate the number of bookings per month for the distribution of airbnb unit to the number 3 or 3.5 represents the upper end the distribution to the top 10 percent of most intellectually used airbnb unit are rent out about 3 to 3 and a half times more. >> there was a but i think that you also talked about commercial users and the density of the unit they control so people who sort of get a lot of income in short-term rentals by renting
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out unit full-time tend to control more than one unit. >> that's one question that is difficult to answer is it so incredible difficult we know how many units a host has on airbnb but no idea whether that host is a booking agent to each the listing could be opposed by a different individual even though their managed audio the same booking agent on page 17 i have the hosts that list the unit 10 to 15 percent on airbnb have more than one listing but not possible to say from that all of them are multiple yeah. >> thank you, very much. very much appreciate. >> and good use of staff for this kind of report thank you.
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>> thank you. >> okay opening it up for public comment and there is a block for time that was requested. >> the organized opposition will have a block of 10 minutes with 3 persons. >> the controller's office is here and has a couple of minutes to address the commission? i don't see mr. egging con i was here earlier thank you to >> commissioners doug with share better san francisco coalition of affordable housing senior and disability activist landlords and part-time owners association and neighborhood groups that weer opposed to the legislation you have 3 different pieces of legislation we want those in the supervisor campos ordinance that are opposed to
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other things why are we here today everyone agrees that the law that was passed last year is unenforceable and rather than talking about genetics if i can cite an of somebody who list off the airbnb listings today hey, i'm carolyn my husband and i own a hundred property in san francisco? a business for us we don't live in those apartment we special in short-term rentals we diesel with vendor who make sure our firms are well maintained and tenant get great customer service center who's this person google is wonderful this person is carolyn